Hibbett Q2 Not As Bad As Feared: Analyst's Spotlight On Lower Freight And Logistics Costs
Portfolio Pulse from Nabaparna Bhattacharya
Hibbett, Inc. reported a Q2 FY23 sales decline of 4.6% YoY to $374.88 million, missing the analyst consensus. However, Telsey Advisory Group analyst Cristina Fernandez reiterated an Outperform rating on the company, with a price target of $60.00. The Q2 gross margin contracted 160 basis points Y/Y to 32.8%, reflecting higher promotional activity and occupancy deleverage, offset by lower freight and logistics costs. Hibbett maintained its 2023 EPS guidance of $7.00-$7.75. HIBB shares are trading higher by 22.87% to $45.29.
August 25, 2023 | 6:20 pm
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POSITIVE IMPACT
Hibbett's Q2 FY23 sales decline was less severe than expected, with an Outperform rating reiterated by Telsey Advisory Group. The company's shares are trading higher.
Despite a sales decline in Q2, Hibbett's performance was not as bad as feared, and the company's shares are trading higher. This is likely due to the Outperform rating reiterated by Telsey Advisory Group and the company's maintained EPS guidance for 2023.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Foot Locker, Inc.'s comments earlier this week around a soft back-to-school and more promotional outlook for 2H23 have been noted in relation to Hibbett's performance.
Foot Locker's comments on a soft back-to-school season and a more promotional outlook for the second half of 2023 have been mentioned in relation to Hibbett's performance. However, there is no direct impact on Foot Locker's stock from this news.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50